This quiz works best with JavaScript enabled. Home > Cost Accounting > Manufacturing Overhead > Manufacturing Overhead – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Manufacturing Overhead Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which basis uses RM per basis to determine POR? A) Unit of Production. B) DM Cost & DL Cost. C) DL Cost & DL Hours. D) Unit of Production, DL Hours & Machine Hours. Show Answer Correct Answer: D) Unit of Production, DL Hours & Machine Hours. 2. The target cost for a job using job order costing is calculated as: A) Direct costs + desired profit. B) Expected selling price-direct costs. C) Expected selling price-desired profit. D) Expected selling price + desired profit. Show Answer Correct Answer: C) Expected selling price-desired profit. 3. Which of the following is the first step in developing an Overhead Absorption Rate (OHAR)? A) Re-apportionment. B) Apportionment. C) Allocation. D) Overhead Absorption Rate. Show Answer Correct Answer: C) Allocation. 4. The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as: A) Predetermined Overhead. B) Undetermined Overhead. C) Overapplied Overhead. D) Underapplied Overhead. Show Answer Correct Answer: C) Overapplied Overhead. 5. What is Overhead? A) Indirect Material. B) Indirect Labour. C) Indirect Expenses. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. What items of expenditure go together to make up the PRIME COST? A) Materials only. B) Labour only. C) Both materials and labour. D) Materials, labour and overheads. Show Answer Correct Answer: C) Both materials and labour. 7. A company is more likely to use a job order cost system if: A) It manufactures a large volume of similar products. B) Its production is continuous. C) It manufactures products with unique characteristics. D) It uses a periodic inventory system. Show Answer Correct Answer: C) It manufactures products with unique characteristics. 8. Which of the following would NOT usually be considered a product cost? A) Property taxes on factory building. B) Direct materials. C) Indirect labor. D) Advertising. Show Answer Correct Answer: D) Advertising. 9. An overhead costs of insurance on plant, is best be apportioned according to ..... A) Square meter area. B) Number of employees. C) Horse power (hp). D) Value of plant (RM). Show Answer Correct Answer: D) Value of plant (RM). 10. What are the components of normal costing system? A) Actual DM + Actual DL = Applied MOH. B) Actual DM + Actual DL + Applied MOH. C) Actual DM + Applied MOH. D) Actual DM + Actual DL + Actual MOH. Show Answer Correct Answer: B) Actual DM + Actual DL + Applied MOH. 11. The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: A) Raw Materials Inventory. B) Finished Goods Inventory. C) Work in Process Inventory. D) Cost of Goods Sold. Show Answer Correct Answer: C) Work in Process Inventory. 12. An important feature of a job order costing is that each job, A) Must be similar to previous jobs completed. B) Has its own distinguishing characteristics. C) Must be completed before a new job is accepted. D) Consists of one unit of output. Show Answer Correct Answer: B) Has its own distinguishing characteristics. 13. What are the adjustments for over applied Manufacturing Overhead? A) Dr. MOHCr. COGS. B) Dr. MOHCr. Cash. C) Dr. COGSCr. MOH. D) Dr. MOHCr. Finished Goods. Show Answer Correct Answer: A) Dr. MOHCr. COGS. 14. All characteristics of job-order costing except, A) Homogeneous products. B) Wide variety of distinct products. C) Costs accumulated by job. D) Cost per unit computed by dividing total or department job costs by units produced on that job. Show Answer Correct Answer: A) Homogeneous products. 15. Customs duties increase- A) Raw material costs. B) Overhead costs. C) Selling and distribution costs. D) Sales. Show Answer Correct Answer: A) Raw material costs. 16. Manufacturing overhead is underapplied if: A) Actual overhead is less than applied. B) Actual overhead is greater than applied. C) The predetermined rate equals the actual rate. D) Actual overhead equals applied overhead. Show Answer Correct Answer: A) Actual overhead is less than applied. 17. Factory insurance is considered to be a- A) Overhead costs. B) Prime costs. C) Administrative costs. D) Operating income. Show Answer Correct Answer: A) Overhead costs. 18. An overhead costs of rental, is best be apportioned according to ..... A) Square meter area. B) Number of employees. C) Horse power (hp). D) Value of plant (RM). Show Answer Correct Answer: A) Square meter area. 19. Explain the concept of actual overhead. A) Usually made by management based on past experience. B) Overhead that incurred during production in a certain period of time. C) The amount of overhead that is estimated before the production start. D) Known as indirect manufacturing costs. Show Answer Correct Answer: B) Overhead that incurred during production in a certain period of time. 20. Which of the following source documents is used to record the amount of direct materials on the job cost sheet? A) Time Ticket. B) Material Requisition Form. C) Production Cost Report. D) Cash Book. Show Answer Correct Answer: B) Material Requisition Form. ← PreviousNext →Related QuizzesCost Accounting QuizzesManufacturing Overhead Quiz 1Manufacturing Overhead Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books